Introduction#
LV Bonds Plc has announced the launch of an offering for fixed rate subordinated notes, which are backed by Liverpool Victoria Financial Services Limited. This move comes alongside plans to redeem existing notes worth £350 million.
Details of the Offering#
The new offering will consist of fixed rate subordinated notes, which are a type of debt instrument that ranks lower than other debts in terms of claims on assets in the event of liquidation. The current outstanding notes, which carry a 6.50% interest rate and are due in 2043, have £200 million remaining.
Redemption Plans#
LV Bonds intends to fully redeem these existing notes on May 22, 2026, pending approval from the Bank of England’s Prudential Regulatory Authority. This means that the company plans to pay back the investors who hold these notes at the specified date, provided they receive the necessary regulatory consent.
Funding the Redemption#
The company has indicated that the redemption will be financed through the proceeds from the new note issuance, depending on market conditions. Once the regulatory approval is obtained, LV Bonds will inform the current note holders through the appropriate clearing systems.
LV Bonds Plc is identified by the Legal Entity Identifier 213800Q3EZSYWUQ1UM74, with Liverpool Victoria Financial Services Limited acting as the guarantor for both the existing and new notes.